Monday, March 31, 2014

Los Angeles Home Buyers and Sellers Stress Test


Buying a Home Is Great Fun - but also a Stress Producer

According to Leslie Sargent Eskildsen, an Orange County Realtor, the process of buying or selling a home commonly produces stress in all parties.  She has compiled her own list of the five biggest stress points for each. 

The top five escrow stress points for sellers
  • The buyers’ contingency removal period. This is the 17 days the buyers hold you hostage while they contemplate whether or not they are still interested in buying your house. Now, that sounds a little harsh, but the truth is the sellers really have their hands tied during this whole period.
  • The home inspection. You don’t want to be there when the guy with a tool belt and a ladder shows up at your door. Just go to a movie, get a mani-pedi, or stay at work. And then don’t even read the inspection report. It will just infuriate you. It only matters when the buyers submit a request for repairs.
  • The request for repairs. This is the list of things the buyers aren’t so happy with and are asking you to repair. On your time and with your money. The most stressful part about this process is wondering if you refuse to do even one of their requests, will they back out?
  • The termite report. You’ve never seen any termites. But they might be up there in the attic chewing away at your house’s infrastructure. And what if you need to do that tent thing?
  • Waiting to see the proceeds of the sale deposited into your bank account. Or hitting return every seven seconds to see if your bank balance has been boosted. Many sellers resort to nail biting.
The top five escrow stress points for buyers
  • Gathering up all the pieces of personal financial information. Seriously, these people are relentless. The wanted it to get your pre-approval, they want it updated to the nanosecond now that you’re in escrow, and they may want it again right before they agree to fund your loan.
  • The request for repairs. What to ask for? What to ignore? What doesn’t matter because you’re tearing out the kitchen? What if the seller says “no?”
  • Removing contingencies in writing. The doing of which puts your deposit in the hands of the seller if you back out. This is serious stuff. Will you move forward without a safety net? Because if you don’t, the seller has the right to cancel.
  • Signing your loan documents. The sweat usually breaks out when you sit down with the escrow officer, who has a stack of paperwork about three inches high, four pens, a notary stamp, a fingerprint ink pad and asks if you’d like some water before you get started. Water? Isn’t that what they offer prisoners?
  • Waiting for the keys. You’ve got moving vans scheduled, carpet installation scheduled, vacation from work scheduled. Now all you need are the keys. The ticking of the second hand on your analog clock app on your smart phone gets louder and louder every second that tics by and your Realtor hasn’t called to arrange to give you the keys. And when it gets past 5 p.m. and your carpet guy can’t be reached just in case you have to reschedule because you don’t have the keys, the tic is even louder. Maybe a twitch breaks out.
The top five ecrow stress points for Realtors.
I’ll never tell.
Leslie Sargent Eskildsen is an Orange County Realtor. She blogs about what she thinks Orange County homebuyers and sellers need to be successful in the real estate market. She can be reached at

Most of those stress points above seem to revolve around the mortgage.  That may be true for some buyers, but instead of taking Xanax, you should try using Bill Rayman to handle all your mortgage issues.  He and his staff at are trained to move you quickly and seamlessly through the entire process.  Bill's reviews and testimonials almost universally speak about how professional and stress-free the mortgage can be when handled by experienced professionals who are there to serve you, not the bank. 

Call Bill today to discuss your mortgage needs.  424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025

Monday, March 17, 2014

Should You Get an Adjustable Rate Mortgage?

Wall Street Journal Reports that ARM's are BACK in Style

Who wouldn't want a loan that starts out with low interest rates and low payments for 5, 7, or even ten years, and then only goes up if the interest rates at that time are at certain levels based on the contract?  It sounds like a very sweet deal, and as the chart above from the Wall Street Journal shows, folks who are spending a lot of money on a home are getting ARM's at a very high percent.

So, should you get an adjustable rate mortgage
?  Or are you better off with a fixed rate?

You are likely to be very surprised by what Bill has to say about the choices.  He presents historical evidence to prove that there are likely benefits to fixed rate mortgage over the long term.  However, that doesn't mean that a fixed rate is right for you.  Bill makes a clear and concise argument for the type of loan you might prefer based on your circumstances, and even partly based on your personality. 

If you would like to get a more personal an in-depth consultation with Bill that can look very directly at your own specific circumstance, don't hesitate to pick up the phone and call 424-354-5325. Bill will gladly provide you with ideas and direction based on his many years of experience.  And there is no cost or obligation for the time spent. 

Saturday, March 8, 2014

Should I Get FHA or Private Mortgage Insurance?

If you pay less than 20% down on your mortgage, you will need either FHA or PMI

It is possible to get a mortgage in Los Angeles in 2014 without 20% down.  It isn't easy, and you will need a decent credit score.  However, if you have less than 20% down, you will absolutely be required to have mortgage insurance. 

There are two types.  The FHA was established for the purpose of hoping those who might not otherwise be able to afford to buy their own home with a vehicle that would guarantee the mortgage to the underwriting bank or other lender.  These federally insured loans have helped millions of folks get into a home, duplex or small apartment building 

FHA allows you to have as little as 3.5% down, but not all lenders will allow you to go with such a small down payment, even with FHA.  Your credit score will also impact the amount that you can put down.  While the FHA still provides the bulk of mortgage insurance, the cost has gone up substantially (almost double since 2008), and this has resulted in less expensive private insurance plans to make a resurgence.

PMI or private mortgage insurance generally starts at 5% down.  Currently the overall cost and the terms of PMI are much better than FHA.  FHA insurance may be easier to get for some borrowers.  According to

If you are in the market for a home or small multi residential unit, Bill Rayman can help you determine the best options available for you.  There is no cost or obligation for picking Bill's brain regarding your specific needs.  Bill will fight for you.  His only goal is to get you the best possible deal given your hopes and circumstances.   Call  424-354-5325

Bill Rayman Home Mortgage
12121 Wilshire Blvd
Suite 350
LA CA 90025